Money Matters in Japan

The Japanese currency is the Japanese yen, abbreviated ¥ (or JPY in foreign exchange contexts). The symbol 円 (pronounced en) is used in the Japanese language itself. As of 2009, the exchange rate hovers around 99 yen to the dollar.

Coins: 1 (silver), 5 (gold with a center hole), 10 (copper), 50 (silver with a center hole), 100 (silver), and 500 yen. There are two ¥500 coins, distinguishable by their color. (The new ones are gold, the old ones are silver).



Bills: 1,000 (blue), 2,000 (green), 5,000 (purple), and 10,000 yen (brown). ¥2,000 bills are rare. New designs for all the bills except ¥2,000 were introduced in November 2004, so there are now two versions in circulation. Most merchants will not object to receiving a ¥10,000 bill even for a small purchase.

Japan is still fundamentally a cash society. Although most stores and hotels serving foreign customers take credit cards, some businesses such as cafés, bars, grocery stores, and even smaller hotels and inns do not. Even businesses that do take cards often have a minimum charge as well as a surcharge, although this practice is disappearing. The Japanese usually carry around large quantities of cash - it is quite safe to do so and is almost a necessity, especially in smaller towns and more isolated areas. In many cities, the Japanese can also use mobile phones to pay for their purchases where mobile phones function like credit cards and the cost is billed to them with their mobile phone bill. However, a Japanese phone and SIM card is required to make use of this service so it's typically not available to foreigners on short visits.

Almost any major bank in Japan will provide foreign currency exchange from US dollars (cash and traveller's checks). Rates are basically the same whichever bank you choose. Having to wait 15-30 minutes, depending on how busy the branch gets, is not unusual. Other currencies accepted are Euros, Canadian, Australian, and New Zealand dollars, and British Pound Sterling. Among other Asian currencies, Singapore dollars seem to be the most widely accepted.
Exchange rates for US dollars and Euros are typically very good (about 2% below the official rate). Exchange rates for other currencies are very poor (up to 15% below the official rate). Other Asian currencies are generally not accepted. Japanese post offices also can cash traveller's checks or exchange cash for yen, at a slightly better rate than the banks. Traveller's checks also have a better rate of exchange than cash. Note that if you are exchanging amounts in excess of US$1,000 (whether cash or T/C), you will be required to provide identification that includes your name, address, and date of birth (to prevent money laundering and the funding of terrorism[17]). Since passports usually do not show your address, bring along another form of I.D. such as a driver's license that shows your address.

Japanese ATMs, known locally as cash corners (キャッシュコーナー kyasshu kōnā), generally do not accept foreign cards and the availability of credit card advances, known as cashing (キャッシング kyasshingu), is spotty.

The major exceptions are:
Citibank, which has a limited network (see here for a list) but does have ATMs at the major airports.
The Post Office (郵便局 Yūbin kyoku), which also does banking and has a branch in almost every village. Most postal ATMs provide instructions in English as well as Japanese. Plus, Cirrus, Visa Electron, Maestro are accepted, and you can do credit card advances on Visa, Mastercard, Amex and Diners Club. Your PIN must be 6 digits or less. [18]

Over 12,000 Japanese 7-Eleven stores [19] with ATMs accept foreign cards for cash withdrawals. Accepted cards include Visa, Mastercard, American Express, JCB and UnionPay, and ATM cards with Plus, Maestro or Cirrus logos. These are the most useful as they are everywhere and are accessible 24/7, however they don't allow withdrawals of less than ¥1,000.
Shinsei Bank (新生銀行) ATMs, which accept Plus and Cirrus, are located at major Tokyo Metro and Keikyu stations, as well as in downtown areas of major cities.

One thing to beware: many Japanese ATMs are closed at night and during the weekends, so it's best to get your banking done during office hours! An exception is 7-Eleven, which is open 24 hours.


Vending machines in Japan are known for their pervasiveness and the (notorious) variety of products they sell. Most will take ¥1,000 bills, and some types such as train ticket machines will take up to ¥10,000; none accept ¥1 or ¥5 coins, nor ¥2,000 notes. And even the most high-tech vending machines do not take credit cards, save for certain ones in train stations.
Prepaid electronic cards are quite popular in Japan for small purchases. There are cards for train fares, convenience stores purchases, and public telephones, though they aren't interchangeable.
There is a 5% consumption tax on all sales in Japan. As of April 2004, the tax must now be included in all displayed prices, but some stores still ALSO display tax-excluded prices, so pay attention. The word Zei-nuki (税抜) means tax-excluded, Zei-komi (税込) means tax-included. If you cannot find out any words in the price card, most of them are tax-included.

Tips are not customary and would most likely be refused. Japanese service is legendary, and you do not need to bribe the waiters/waitresses to do their job properly. Besides, the meal is probably expensive enough already. Some restaurants will however add a 10% service charge. Most family restaurants that are open late or 24 hours will also add a 10% late-night charge. Even bellhops in high end hotels usually do not accept tips, and beyond the main tourist areas, tipping can even be offensive as it suggests that the service staff are not doing their job properly and need to be paid extra to do so. Pretty much the only exceptions are high-end ryokan (see Sleep) and English-speaking tour guides.

Always keep a sizeable stack of reserve money in Japan. Though Japan is a highly developed country, save using your embassy or consulate as a middle man, and the single unregistered western union broker in Tokyo[20]. There is literally no way of receiving money from home, if your wallet is stolen, your credit card stops working, or you max out your available credit. But reserves will also help you in the country side, where running out of money has the potential to leave you homeless for nights or even full days, when the post-offices are closed.



Costs
Japan has a reputation for being extremely expensive — and it can be. However, many things have become significantly cheaper in the last decade. Japan need not be outrageously expensive if you plan carefully and in fact, is probably no more expensive than say the United States or Australia. For long-distance travel, in particular, the Japan Rail Pass and Visit Japan flights (see Get around) can save you a bundle.
As rough guidelines, you will find it very difficult to travel on less than ¥4,000 per day (but if you plan carefully, it's certainly not impossible), and can only expect a degree of comfort if you double the budget to ¥10,000. Staying in posh hotels, eating fancy meals or just traveling long-distance will easily double this yet again. Typical prices for moderate budget travel would be ¥5,000 for hotel, ¥2,000 for meals, and ¥2,000 again for entry fees and local transport.
However, if you find yourself a little short on cash, you can get your essential items in one of the many ¥100 shops (百円ショップ) located in most cities. Daiso [21] is the Japan's largest ¥100 shop chain, with 2,500 shops across Japan. Other large chains are Can Do (キャンドゥ), Seria (セリア), and Silk (シルク). There are also convenience-store-like ¥100 shops such as SHOP99 and Lawson Store 100 where you can buy sandwiches, drinks, and vegetables in addition to selected ¥100 items.

Tips for budget shopping
As noted above, Japan can be expensive. You might feel every item or meal comes with a high price tag in Japan. The main reason for this is that you have chosen an inner-city top-end shopping or eating district. If you wish to buy more reasonably priced items, consider carefully whether you are desperately looking for upmarket products, or just want daily commodities and groceries. The former should try intown premium department stores, boutiques and restaurants in the well-publicized shopping districts such as Isetan in Shinjuku and Matsuya in Ginza, the latter would be better off turn their steps toward suburban shopping malls or supermarkets such as Aeon or Ito-Yokado.